The steering seems to be a big point of confusion. The X1 sDrive 28i gets EPS, the X1 xDrive 28i and 35i get hydraulic. There isn't room under the car for both the EPS and the front diff. The EPS rack is massive with the attached motor so it makes sense that it is simply in the way.

This is 100% confirmed. We just test drove a 2013 X1 xDrive 35i with hydraulic steering. You can see the PS fluid reservoir in the foreground and the PS pump in the background.